HK Stock Market Move | China United Network Communications (00762) opened nearly 8% lower, with net profit in the first half of the year down nearly 35% year-on-year, and will not distribute an interim dividend.

China United Network Communications (00762) opened nearly 8% lower and as of the time of this report, was down 7.74%, trading at HKD 5.785, with a transaction volume of HKD 51.39 million. In news, China United Network Communications reported its earnings, with operating revenue for the first half of the year reaching RMB 201.4 billion, a year-on-year increase of 0.6%; main business revenue was RMB 178 billion, a year-on-year decrease of 0.2%; net profit attributable to the parent company was RMB 4.1 billion, a year-on-year decline of 34.8%; and total profit was RMB 11.2 billion, a year-on-year decrease of 36.6%. During the reporting period, the company announced that it would not distribute an interim dividend for the fiscal year 2026. The company stated that the fluctuations in profitability are due to multiple factors. Aside from value-added taxes, changes in the pace of labor cost investments are a significant reason, with expectations for stable labor costs throughout the year and a noticeable narrowing of profit declines. Data shows that the companys capital expenditure for the first half of the year was RMB 24.1 billion, implementing the deployment of the Six Networks initiative, strengthening computational power networks and next-generation communication networks, with the share of computational power investment rising to 37% and the investment amount increasing by over 80% year-on-year.